Why TeraWulf Stock Raced More Than 10% Higher Today

On Tuesday, TeraWulf (WULF 3.16%) announced a major development in its corporate transformation. The company, once a pure-play Bitcoin miner now tilting in favor of its data center operations, has bolstered that end of its business. Disseminating that news, investors plunged into the company's stock, sending it to an over 10% gain that trading session.

A very suitable acquisition

Shortly before market open, TeraWulf disclosed that it has acquired the Muskie Data Campus, a hyperscale high-performance computing (HPC) development site located in Kentucky.

Image source: Getty Images.

The property is located within the 1,000-acre EastPark Industrial Park and comprises roughly 285 acres of land. The company said this space is capable of supporting infrastructure suitable for hyperscale artificial intelligence (AI) and HPC. It added that there is optional additional acreage that could support expansion of such facilities in the future.

TeraWulf bought the site from real estate and infrastructure development company Industrial Equity Partners. The price was not divulged.

The company wrote that the site is expected to support over 1 gigawatt of data center capacity over time. It expects the start of delivery of an initial 500 megawatts in the second half of 2028, with the remainder coming in the same period of 2030.

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NASDAQ: WULF

TeraWulf

Today's Change

(-3.16%) $-0.83

Current Price

$25.56

Key Data Points

Market Cap

$13B

Day's Range

$24.66 - $26.32

52wk Range

$3.40 - $27.26

Volume

26.7M

Avg Vol

30.6M

Gross Margin

3.62%

Electric announcement

In its press release on the Muskie acquisition, TeraWulf quoted CEO Paul Prager as saying that it is fully in line with the company's strategy. He said the site will aid its efforts in "securing and developing large-scale, power-advantaged sites capable of supporting the next generation of HPC workloads."

Although the purchase price wasn't disclosed, investors clearly didn't mind. One major reason for this is that the acquisition was bundled with pre-signed utility agreements and will be powered by a 345 kV substation connected directly to an existing 765 kV transmission grid currently. The substation is currently being constructed by Kentucky Power.

BTC1.02%
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